STATEWIDE — The United States Congress passed the Tax Cuts and Jobs Act of 2017 in December 2017, which made several changes to federal tax rules. The Colorado Department of Revenue (CDOR) is updating the Colorado Income Tax Withholding Tables for Employers (publication DR 1098) due to this change in federal tax law. An updated version of publication DR 1098 with new tables will be published on Monday, April 2 and available at this link: Colorado.gov/pacific/sites/default/files/DR1098.pdf.
CDOR aims to make complex tax information easier to understand to increase accurate and timely tax filings. The federal tax changes may increase taxpayers’ Federal Taxable Income (FTI), which may, in turn, increase their state income tax liability. These changes may impact federal and state income taxes that are due beginning in 2019, not the income taxes that are due on April 17.
CDOR updates these withholding tables for the beginning of each odd-numbered year, so publication DR 1098 was last updated for January 2017. It will be updated again on its regular schedule for January 2019. CDOR encourages employers to use the new withholding tables as soon as possible.
Revenue Online, CDOR’s free, one-stop site for filing state taxes and managing records at Colorado.gov/RevenueOnline, provides employers with a simple and secure method for filing year-end W-2, 1099 and/or W-2G statements. Simply click on the “Submit Year-End Withholding” hyperlink in the Additional Services section. No need to log in.